Ethereum staking provider Lido reported a decrease in annual revenue, citing major challenges with competition.
In his 2025 year reportThe Lido Foundation reported that the total cost of the protocol was $ 40.5 million, from $ 52.4 million reached in 2024—a 23% decrease in annual revenue (YoY).
The Lido Market faces the storm
Commenting on the decline in revenue, Lido said,
2025 was held under reward pressure driven by higher interest rates and lower net APR rates.
In terms of exports, the policy stated that this was also encouraged by changes in the exchange rate and exchange rate system.
The economic shift from Simple LST to exchange and de-institutionalization, as well as increased competition, reduced the size of the field in which Lido held corporate leadership.
Well, interest has increased in recent months, reaching 30.7% of the total amount of ETH (38.2 million in ETH value). The increase was driven by Spot ETH ETFs and investment firms that introduced yields to their investors.
In contrast, Lido’s output has not decreased even in 2026. Only in the month of March, Lido took the lead. outputand about 310K ETH to leave the protocol.
Despite this, Lido maintained its market share at 24% (8.8 million invested ETH). However, it will focus on different models in 2026.
This will include doubling down on the distribution channel for low-risk shares (for example, through WisdomTree Physical Lido Staked Ether), expanding its Lido Earn product, and expanding its legal market.
LDO token alignment plans
Lido also stated that it will promote ‘economic integration’ between protocol systems and LDO. According to ongoing discussions, part of the token expansion plan will include lending tokens through a ‘treasury surplus fund.’
This an idea floated last November, with an annual budget of $10 million for the procurement program. A similar system is expected in Q2 2026, but it remains to be seen how LDO, the standard protocol type, will react to the change.
At the time of writing, LDO was trading at $0.299 and was down 80% from the H2 2025 high of $1.50.
Brief Summary
- Lido’s revenue fell 23% to $40.5M amid intense competition from ETH investors, financial firms, and centralized exchanges.
- The alignment of LDO tokens and the $10M purchase program is expected to be launched in Q2 2026.
